Russia Tightens Grip on Unregistered Cryptocurrency Mining with Criminal Enforcement

The enforcement crackdown begins

Russia’s government has escalated its regulatory approach to cryptocurrency mining by introducing criminal penalties for unauthorized operations. Starting from 2026, the nation will shift from mere registration requirements to active criminal prosecution of illegal mining activities—a significant hardening of policy that will reshape the country’s digital asset landscape.

Heavy penalties for unauthorized miners

The proposed amendments to Russia’s Criminal Code introduce Article 171.6, which establishes a comprehensive framework for penalizing unregistered mining operations. Individual miners operating without proper registration face substantial consequences: fines reaching 1.5 million rubles or forced labor lasting up to two years. The penalties escalate dramatically for large-scale operations or organized groups engaged in mining activities.

When mining generates what authorities define as “substantial income”—exceeding 13.5 million rubles—or is organized by criminal groups, penalties jump to imprisonment for up to 5 years. Offenses producing “large-scale income” above 3.5 million rubles trigger even harsher measures. Criminal organizations operating mining infrastructure may face fines between 500,000 to 2.5 million rubles, up to 5 years of forced labor, or imprisonment with additional financial penalties.

Legal mining requires compliance and transparency

Russia’s cryptocurrency mining became legal on November 1, 2024, but legalization came with conditions. All registered miners—whether operating as legal entities, individuals, or infrastructure operators—must register with the Federal Tax Service (FNS). By May 2025, over 1,000 miners had already completed registration.

The compliance burden extends beyond initial registration. Every registered miner must submit monthly reports detailing all mined digital assets through the FNS online portal. This mandatory transparency measure ensures government visibility into mining operations and maintains regulatory control over the sector.

The policy’s broader implications

Deputy Prime Minister Alexander Novak confirmed that criminal liability enforcement will extend beyond cryptocurrency mining to include unlicensed lending activities, reflecting the government’s comprehensive approach to regulating digital assets. Simultaneously, Russian authorities maintain their long-standing prohibition on using Bitcoin, Ethereum, and other cryptocurrencies for everyday payments—a distinction between mining (permitted) and spending (banned) that defines Russia’s unique regulatory stance.

This dual approach—permitting organized, transparent mining while criminalizing unregistered operations and blocking use as currency—aims to protect investors, ensure operational transparency, and stabilize Russia’s digital asset ecosystem under state oversight.